FAQs: How to Change Dividends and Capital Gains Distributions
I've requested that all dividends in one account are reinvested; can I change this selection for just one position?
Yes, and it won't affect the other positions' dividend reinvestment updates you made. Updates you make to an individual position override account-level distribution options. For example, you updated all dividends in account 123456789 to be reinvested. However, now you want to change your Fidelity Canada fund dividend (also in account 123456789) to be directed to your Fidelity Balanced fund. You can make that specific change without affecting the dividend reinvestments for the other positions in that account.
How do I get dividends from my accounts sent to me?
You'll need to set up an earnings withdrawal plan. You can do this using Automatic WithdrawalsLog In Required.
How do I get dividends and capital gains sent to me from my mutual fund account?
You have the option to receive dividends and/or capital gains by check or by electronic funds transfer (EFT) to your bank account. See Automatic WithdrawalsLog In Required for more details.
Why didn't I get confirmation when my bank received my dividends from Fidelity?
Confirmation statements are not sent when dividends are sent to your bank. However, you can find this information on your Investment Report.
What happens if I forget to set up my dividend and capital gains distribution options?
While you can change these at any time, the defaults are:
- For mutual funds, the dividends and/or capitals gains are reinvested to buy additional shares of the same fund.
- For equities, the dividends and capital gains are deposited in your cash (core) account.
I just updated my dividends to be reinvested, but instead they were deposited into my core account. Why?
Changes to your dividend payment option must be made before the record date to receive dividends based on your revised instructions. However, your future dividends, will be reinvested.
Do dividend and capital gains reinvestments need to meet the dollar amounts for minimum investments?
No, dividends and capital gains are exempt from the minimum additional investment requirements.
Are my dividends from my mutual fund taxable if I changed from cash to reinvest?
Most likely. If the mutual fund is in a taxable account (e.g., not an IRA or 529 plan), you are required to pay taxes on mutual fund distributions, whether the distributions are paid out in cash or reinvested in additional shares. You'll receive an IRS Form 1099-DIV after the end of each calendar year.
Why did I get an error message when I tried to direct dividends from my New York Municipal Money Market to my Select Health Care fund?
You cannot direct dividends from certain funds because they are priced differently from other retail money market funds. These funds include:
- Fidelity Municipal Money Market
- Massachusetts Municipal Money Market
- New York Municipal Money Market
Where can I learn more about dividends?
For in-depth information on dividends and how they can play a role in your investment strategy, check out All About Dividends in our Learning Center.